Federal and provincial governments in Canada have announced joint funding of up to US$20 million to support Ontario farmers, food processors, and agribusinesses in expanding domestic and international sales of Ontario-grown products. The funding will be delivered through the new Market Diversification and Trade Resiliency Initiative, according to Agriculture and Agri-Food Canada.
The initiative is designed to support projects aimed at improving market access, strengthening production capacity, and supporting entry into new markets. It forms part of the Sustainable Canadian Agricultural Partnership and aligns with Ontario's Grow Ontario Strategy, which focuses on resilience and competitiveness in the agri-food sector amid trade pressures and broader economic uncertainty.
Applications for the Market Diversification and Trade Resiliency Initiative are scheduled to open on February 17, 2026. Funding will be available through three main streams. These include support for planning activities related to market development and diversification, implementation of market development and diversification strategies, including new product development, and investments in equipment and technology to enable production tailored to new market requirements.
Funding will cover a portion of eligible project costs, with cost-share levels and maximum funding amounts varying depending on the type of project. The program provides enhanced support for export development initiatives targeting non-U.S. markets, while also allowing support for projects linked to the United States.
The initiative is funded under the Sustainable Canadian Agricultural Partnership, a five-year program running from 2023 to 2028 with a total budget of US$3.5 billion. This includes US$1 billion for federal programs and US$2.5 billion for programs designed and delivered by provinces and territories, with costs shared 60 per cent federally and 40 per cent provincially or territorially.
According to Agriculture and Agri-Food Canada, the funding is intended to help producers and processors adapt to changing trade conditions, strengthen supply chains, and improve access to a wider range of markets. Stakeholder organisations representing farmers, processors, and agri-food businesses have indicated that the initiative addresses ongoing challenges related to market concentration, competitiveness, and export development.
The governments involved stated that the program focuses on practical measures to support trade diversification and production investment, rather than short-term market promotion, with the aim of improving longer-term stability across Ontario's agri-food sector.
For more information:
Jennica Klassen
Agriculture and Agri-Food Canada
Tel: +1 866 345 7972
Email: [email protected]
www.canada.ca
